Global Aid in Turmoil as USAID Disappears from the World Stage

For more than six decades, the United States Agency for International Development (USAID) was the face of American humanitarian and development assistance abroad. From famine relief in the Horn of Africa to rebuilding health systems in post-conflict nations, the agency’s footprint stretched over 100 countries, quietly underpinning U.S. influence in the developing world.

Now, it is gone.

On January 20, 2025, the newly inaugurated Trump administration froze virtually all U.S. foreign aid in an executive order that stunned the diplomatic and humanitarian communities. The move was pitched as a realignment of U.S. assistance under an “America First” framework. However, by the end of the 90-day freeze, USAID’s operations had been significantly impacted: 83 percent of its programs had been terminated, most of its 10,000-strong staff had been dismissed or placed on leave, and its remaining functions had been folded into the U.S. State Department (AP News, The Guardian).

“It is hard to overstate the scale of this shock,” said a senior official from a European development agency, speaking anonymously. “We have lost the largest single bilateral donor in the humanitarian system almost overnight.”

 

An Agency That Defined U.S. Soft Power

Founded in 1961 under the Foreign Assistance Act, USAID became the civilian arm of American foreign policy, tasked with delivering economic growth, governance reforms, health services, and disaster relief. In fiscal year 2024, it disbursed $21.7 billion — a mere 0.3 percent of the U.S. federal budget — but its reach was vast. Programs supported by USAID are credited with preventing an estimated 91.8 million deaths between 2001 and 2021, including more than 30 million children under the age of five (Wikipedia).

Signature initiatives such as the President’s Emergency Plan for AIDS Relief (PEPFAR) transformed public health in low-income countries. At the same time, agricultural and climate resilience projects strengthened livelihoods in regions facing chronic food insecurity.

 

The Humanitarian Fallout

The agency’s dismantling has triggered a chain reaction across the aid sector. A study published in The Lancet warns that the cuts could result in 14 million preventable deaths by 2030, including 4.5 million young children. The suspension of PEPFAR alone could lead to 10.75 million new HIV infections and 2.9 million additional AIDS-related deaths.

In parts of Africa and Latin America, clinics have shut their doors, nutrition programs have collapsed, and malaria prevention campaigns have been suspended. In Somalia, community health workers say they are “flying blind” without the logistical and data support that USAID once provided. In Sudan, 80 percent of community kitchens have closed at a time when half the population faces acute hunger.

Beyond immediate humanitarian needs, analysts warn of more profound strategic implications. “When the U.S. withdraws, others step in,” noted a policy brief from the Center for Strategic and International Studies. China, for example, has increased infrastructure investments and political engagement in several African states where USAID once had a strong presence.

 

Where Development Funding Is Most Needed

The disappearance of USAID has left critical funding gaps in the world’s most fragile and conflict-affected states, particularly in Sub-Saharan Africa, the Middle East, and parts of South Asia. According to the ICVA’s February 2025 survey, over 70 percent of NGOs operating in high-risk environments have already reduced or suspended operations within three months of the funding freeze. IDinsight estimates that over 12 million people stand to lose access to essential services such as maternal health care, vaccination campaigns, and emergency nutrition.

In East Africa alone, USAID previously supported food assistance for over 14 million people annually. That figure is expected to plummet, leaving humanitarian agencies scrambling to reallocate limited resources. The Global Policy Journal warns that countries such as South Sudan, Yemen, and the Democratic Republic of Congo are particularly at risk of losing hard-won gains, with cascading effects on food security, public health, and political stability.

The University of Alabama’s Human Rights Center notes that without immediate replacement funding, these regions will face widening inequalities, weakened governance, and the erosion of resilience against climate and conflict-related shocks. Experts urge European donors to focus on life-saving interventions and institution-building to prevent long-term dependency on emergency aid.

 

A Vacuum Few Can Fill

Private donors, foundations, and even other governments have scrambled to fill the gap, but the scale is daunting. According to AP analysis, even if private giving doubled, it would still fall billions short of the funding USAID once provided annually.

The disruption extends beyond finances. USAID’s data collection, crisis forecasting, and coordination systems — the quiet backbone of humanitarian response — have withered. “It’s not just the dollars. It’s the institutional muscle memory that’s disappearing,” said an NGO director in Nairobi.

The loss is also being felt in unexpected areas: environmental groups warn that cuts to conservation and anti-poaching programs have emboldened criminal networks, with Chinese triads and Mexican cartels exploiting gaps in enforcement to expand wildlife trafficking.

 

What Comes Next

Only Congress can decide its formal fate, with the agency effectively dismantled but still legally in existence. In the meantime, development professionals call for a fundamental rethink of how global aid is financed and delivered.

Strategies under discussion include diversifying funding sources toward multilateral institutions like the UN and World Bank, fostering locally led development models, and investing in the resilience of humanitarian data systems.

Whether these measures can replace the sheer scale, reach, and convening power that USAID once wielded remains uncertain. What is clear, say aid leaders, is that the humanitarian landscape has been permanently altered.

“USAID was never perfect,” said one veteran aid worker in South Sudan. “But without it, we’re facing a future with less capacity, less coordination, and, tragically, more lives lost.”

 

Sources

• US foreign aid cuts leave a funding gap that private donors are unlikely to fill — AP News
• Transcript: The real cost of gutting USAID — Financial Times
• How will Trump and Musk’s freeze on USAID affect millions around the world? — The Guardian
• Chinese triads and Mexican cartels exploit US cuts to wildlife aid — Financial Times
• United States Agency for International Development — Wikipedia
• The impacts of USAID cuts: Less climate resilience, more forced displacement — Refugees International
• Impact of US funding suspension: ICVA NGO survey
• Navigating US global health aid cuts — Brookings

 

About the Author

Jewel Ruiz is a seasoned executive recruiter with over a decade of experience in identifying top talent across various sectors. Since transitioning to recruitment in 2010, she has honed her skills in sourcing, screening, and managing the full recruitment cycle. As a freelance recruiter, Jewel combines a structured approach with deep industry insights to deliver high-quality placements, always focused on achieving optimal results for clients and candidates alike.